Netflix revealed its first-quarter 2025 earnings, highlighting revenue that exceeded expectations with a 13% rise compared to the same period last year, despite volatility in the stock market affecting traditional media shares due to President Donald Trump's trade policies.
The company stated that the revenue growth exceeded forecasts due to higher-than-expected "subscriber numbers" and "advertising revenue." In late January, Netflix raised prices for all packages in the U.S. market and introduced an ad-supported tier.
The financial results show that Netflix's revenue and profit increased. For Q1 2025 (ended 31 March), compared to estimates from LSEG, total revenue was $10.54 billion, slightly above the forecast of $10.52 billion.
, Net income was $2.89 billion, or $6.61 per share, up from $2.33 billion or $5.28 per share in the same period last year.
Notably, this earnings report marks the first time Netflix has stopped disclosing quarterly subscriber counts. The company stated it is shifting focus from "user numbers" to "revenue" and other "financial indicators" that better reflect the business's potential.
Meanwhile, investors across the market have begun to worry about the impact of President Donald Trump's import tariff measures, which could affect consumer purchasing power.
Netflix reaffirmed its confidence, with co-CEO Greg Peters saying, “From what we see now, there are no concerning signs or fundamental changes.” He added, “The entertainment industry is typically resilient during economic slowdowns, and Netflix has weathered such periods before, albeit with a relatively short history.”
Netflix confirmed its full-year revenue target between $43.5 billion and $44.5 billion. It stated that 2025 will be a year to accelerate advertising technology development. In early April, the company launched its self-developed advertising platform in the U.S. and plans to expand it globally in the coming months.
“This advertising platform will become a core part of Netflix’s long-term advertising strategy,” the company said. “We expect it to enhance measurement capabilities, improve targeting accuracy, create new advertising formats, and expand programmatic advertising in the future.”
Programmatic advertising refers to automated buying and selling of digital ad space, using real-time calculations and assessments to maximize advertising precision.
Following the earnings report, Netflix shares rose about 2% in after-hours trading on Thursday.
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Source:CNBC
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